Form 8582 Never Generated

Forum|Forum|4 years ago
January 20, 2022
2 replies
16 views

I am an active participant for a rental property I own. Form 8582 did not produce in 2019 because I used the property for personal use more than 10% of the allowed time. Total expenses were limited to income received. In 2020, because 8582 did not get filed in 2019, the prior years unallowed losses from 2018 of over $160,000 (line 1c) were all lost. Should I actually lose all of those losses because of the 10% personal use in 2019? Or can I amend my 2020 return and restore the 8582 1c prior year losses from 2018? Thank you for your help with this issue.

Vanessa A

Level 15

You can amend your return to claim the unused losses as long as the property qualified in 2020. Rental losses can be carried forward indefinitely until you dispose of your property or they are used up.

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Anonymous_

Level 15

Read Section 280A(c)(5):

https://www.law.cornell.edu/uscode/text/26/280A

Expenses that are not directly allocable to trade or business use will abate and not be carried forward to the following year on Form 8582.